Up until 2011, synthetic index replication was widely used in the European ETF industry and investors appreciated the low tracking errors and, in some cases, higher performances of these products compared to ETFs which used so-called physical replication. But in the aftermath of the financial crisis and the euro crisis, critics argued that ETFs that…
DetailsAlthough the investment industry is normally not a target for public protests or activist campaigns, we witnessed some actions taken by these groups over the course of 2020 regarding the ESG strategies of some asset managers and their ownership of stocks from oil, gas, and coal companies. The ultimate aim of the activists is to…
DetailsAugust was another positive month for the European ETF industry since promoters enjoyed inflows as economies and securities markets stabilized further after the coronavirus lockdown-induced economic downturn. The combination of above average inflows and the positive performance of underlying markets led to an increase in assets under management from €843.5 bn as of July 31,…
DetailsLooking at the actions taken by fund managers and promoters in Europe, it seems like sustainable investing or sustainability is the hot topic in the market. Nearly every company announces that they will or have integrated non-financial criteria into their investment processes or offer funds with a specific approach. On the other hand, it looks…
DetailsWhat is the pathway to freedom of movement for citizens of African countries? In part one, we made the sad finding that Africans are by far the worst affected by the European visa hurdle. Aside from having the highest rate of Schengen visa refusals, all countries in continental Africa are in the bottom 100 in terms…
DetailsEuropean investors bought further back into mutual funds and ETFs in July. Since the global equity markets stabilized further, investors returned to long-term mutual funds because they expect the massive stimulus packages from central banks and governments globally to keep interest rates low and to foster global economic growth after the lockdowns caused by the…
DetailsThe world is getting increasingly hard to navigate. And COVID has just added a new challenge to freedom of movement. But well before the pandemic, OECD countries had been for years tightening their requirements on the granting of visas to citizens from certain countries. The visa hurdle is a particularly harsh reality for African citizens…
DetailsAs the security markets further recovered from the lockdown-induced downturn caused by the onset of the coronavirus pandemic, June was another positive month for the European ETF industry. ETF promoters enjoyed inflows during the month. The combination of above average inflows and the positive performance of underlying markets led to an increase in assets under…
DetailsThe growth of sustainable investing is constantly accelerating and can be seen as one of the most important growth drivers for the fund industry over the next few years. From my point of view, we may reach the breaking point where the majority of assets are managed with a sustainability-based approach rather than in a…
DetailsThe events that took place this year taught us a lot. Even those of us who experienced the restrictions on traveling in the past, have long been accustomed to the fact that in modern reality, we are free to move around the world. For many people who are used to immediately solving their problems, the…
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